Good news for Public Provident Fund (PPF) account holders! The government has removed the fee to update or modify nominee details in PPF accounts. This change comes as part of the Government Savings Promotion General Rules, 2018, which have now been updated via Gazette Notification April 2, 2025.
This means that the Public Provident Fund (PPF), Senior Citizens Savings Scheme (SCSS), National Savings Certificate (NSC), and all other small savings schemes now allow nomination changes free of charge. Earlier, financial institutions and post offices used to levy a fee when account holders wanted to update, modify, or add nominees to these accounts. However, with the recent amendment to the Government Savings Promotion General Rules, 2018, made via Gazette Notification 02/4/25, all nomination-related changes across these small savings schemes will now be processed at zero cost.
Whether you want to add a new nominee, change an existing one, or modify the percentage allocation among multiple nominees, you can now do so without paying any charges.
Finance Minister Nirmala Sitharaman posted on social media X, “Recently was informed that a fee was being levied by financial institutions for updating/modifying nominee details in PPF accounts. Necessary changes are now made in the Government Savings Promotion General Rules 2018 via Gazette Notification 02/4/25 to remove any charges on the updation of nominees for PPF accounts.”
Earlier, financial institutions charged a fee of Rs 50 for making changes to nomination details in PPF, NSC, SCSS accounts. However, with the latest amendment, account holders can now update, add, or modify nominees free of cost.
Also read: Major TDS changes from April 1: Higher limits for interest, rent & dividends
According to Ministry of Finance notification dated April 3, 3035, “In the Government Savings Promotion General Rules, 2018, in the Schedule II, under Fee to be charged for services, the words and figures “(b) Cancellation or change of nomination – Rs 50” shall be deleted.”
Are there multiple nomination facilities available in PPF?
According to the SBI PPF FAQ page, “Yes. Depositor can nominate one or more individuals as nominee but not exceeding four individuals to receive the eligible balance. The balance in the account of the deceased account holder shall earn interest till the end of the month preceding the month in which the eligible balance is paid to the nominee/legal Heir.”
The Banking Amendment Bill 2025, passed recently, allows nomination of up to 4 persons for payment of depositors' money, articles kept in safe custody and safety lockers.
PPF-Exempt-exempt-exempt tax status
Not many assets enjoy the triple income tax exemption that the Public Provident Fund (PPF) does. At the time of investment, accrual, and withdrawal, taxes are exempt. The Income-tax Act of 1961's Section 80C allows for a deduction of up to Rs. 1.5 lakh for investments made in each fiscal year. Each year's interest is likewise exempt from taxes. Last but not least, the accumulated corpus that you extract at maturity is likewise tax-free, making it taxable income.
PPF in Post Office
You must fill out Form F, also called the PPF Nomination Form, and submit it to the post office where your Public Provident Fund (PPF) account is held.
This means that the Public Provident Fund (PPF), Senior Citizens Savings Scheme (SCSS), National Savings Certificate (NSC), and all other small savings schemes now allow nomination changes free of charge. Earlier, financial institutions and post offices used to levy a fee when account holders wanted to update, modify, or add nominees to these accounts. However, with the recent amendment to the Government Savings Promotion General Rules, 2018, made via Gazette Notification 02/4/25, all nomination-related changes across these small savings schemes will now be processed at zero cost.
Whether you want to add a new nominee, change an existing one, or modify the percentage allocation among multiple nominees, you can now do so without paying any charges.
Finance Minister Nirmala Sitharaman posted on social media X, “Recently was informed that a fee was being levied by financial institutions for updating/modifying nominee details in PPF accounts. Necessary changes are now made in the Government Savings Promotion General Rules 2018 via Gazette Notification 02/4/25 to remove any charges on the updation of nominees for PPF accounts.”
Recently was informed that a fee was being levied by financial institutions for updating/modifying nominee details in PPF accounts.
— Nirmala Sitharaman (@nsitharaman) April 3, 2025
Necessary changes are now made in the Government Savings Promotion General Rules 2018 via Gazette Notification 02/4/25 to remove any charges on… pic.twitter.com/Hi33SbLN4E
Earlier, financial institutions charged a fee of Rs 50 for making changes to nomination details in PPF, NSC, SCSS accounts. However, with the latest amendment, account holders can now update, add, or modify nominees free of cost.
Also read: Major TDS changes from April 1: Higher limits for interest, rent & dividends
According to Ministry of Finance notification dated April 3, 3035, “In the Government Savings Promotion General Rules, 2018, in the Schedule II, under Fee to be charged for services, the words and figures “(b) Cancellation or change of nomination – Rs 50” shall be deleted.”
Are there multiple nomination facilities available in PPF?
According to the SBI PPF FAQ page, “Yes. Depositor can nominate one or more individuals as nominee but not exceeding four individuals to receive the eligible balance. The balance in the account of the deceased account holder shall earn interest till the end of the month preceding the month in which the eligible balance is paid to the nominee/legal Heir.”
The Banking Amendment Bill 2025, passed recently, allows nomination of up to 4 persons for payment of depositors' money, articles kept in safe custody and safety lockers.
PPF-Exempt-exempt-exempt tax status
Not many assets enjoy the triple income tax exemption that the Public Provident Fund (PPF) does. At the time of investment, accrual, and withdrawal, taxes are exempt. The Income-tax Act of 1961's Section 80C allows for a deduction of up to Rs. 1.5 lakh for investments made in each fiscal year. Each year's interest is likewise exempt from taxes. Last but not least, the accumulated corpus that you extract at maturity is likewise tax-free, making it taxable income.
PPF in Post Office
You must fill out Form F, also called the PPF Nomination Form, and submit it to the post office where your Public Provident Fund (PPF) account is held.
You may also like
Who is Laura Loomer who got 3 National Security staff fired after a 30-minute meeting with Donald Trunp?
Terrifying moment shark bites woman's arm as she competes in 'mermaid contest'
Did we commit mistake by letting you go last time, SC faults Telangana CM again
Man who bought new house left terrified by what he finds up in the attic
Ship and tanker that crashed in North Sea 'did not have dedicated lookouts'
